Pre-tax profits in 2008 climbed to £249m, up from £201m, as group revenue rose to £8.26bn from £6.47bn.

"We are strong both operationally and financially and the majority of our work is with public sector and regulated customers, who are long-term investors in infrastructure," the firm said.

"While the difficult economic environment will have some impact on our businesses and creates greater uncertainty, we anticipate making progress in 2009."

At the same time it announced that it has won $480 million of new contracts in the US.

In Charlotte, North Carolina, Balfour Beatty Construction US, in joint venture, has been awarded the $293m Mecklenburg County Jail expansion project. The facility will contain an estimated 1,300 to 1,700 beds, with a new utility plant and expansion or renovation of existing support areas. In addition, the project includes associated site work and infrastructure expansion and improvements. Pre-construction will start in spring 2009 and construction is scheduled to begin in summer 2010.

Heery International has won two contracts totalling $187m.

In Texas, it has been awarded a construction management contract by Eagle Mountain-Saginaw Independent School District for its new high school, stadium and career technology facility located north-west of Fort Worth. The three components of the project will be constructed on a single site of approximately 124 acres. Pre-construction services will commence immediately.

In California, it has been awarded a contract by Naval Facilities Engineering Command (NAVFAC) for the Wounded Warrior barracks for marines and sailors stationed at Marine Corps Base Camp Pendleton.